House
Bill 430

(As
Passed the House)

AN
ACT TO PROHIBIT ANY AGENCY, BOARD, COMMISSION, DEPARTMENT, OR INSTITUTION OF
THE STATE OF MISSISSIPPI FROM PURCHASING NEW EQUIPMENT, HIRING NEW EMPLOYEES,
OR PROMOTING, RECLASSIFYING, REALLOCATING OR REALIGNING PAY GRADES WITH REGARD
TO ANY OF ITS EMPLOYEES OR JOB POSITIONS DURING THE CURRENT FISCAL YEAR; TO
ESTABLISH AN APPEAL PROCEDURE TO THE STATE FISCAL OFFICER FOR EMERGENCY
PURCHASES OF EQUIPMENT OR HIRING OF NEW EMPLOYEES; TO SET FORTH THE
DEMONSTRATION OF THE EMERGENCY THAT MUST BE MADE BY THE AGENCY IN ITS APPEAL;
TO PROVIDE THAT THE JOINT LEGISLATIVE BUDGET COMMITTEE SHALL BE NOTIFIED OF
SUCH AN APPEAL AND THAT COMMITTEE MEMBERS MAY ATTEND THE HEARING ON SUCH AN
APPEAL; TO ALLOW THE STATE FISCAL OFFICER, IN HIS DISCRETION, TO AUTHORIZE THE
ACTION SOUGHT IN THE APPEAL; TO PROVIDE AN EXCEPTION TO THE PROHIBITED ACTIONS
OF THIS ACT IF ALL OF THE FUNDS TO BE EXPENDED BY AN AGENCY TO FUND THOSE
ACTIONS ARE FEDERAL FUNDS, STATE-SOURCE SPECIAL FUNDS OR A COMBINATION OF
FEDERAL FUNDS AND STATE-SOURCE SPECIAL FUNDS; TO AMEND SECTION 25-9-116,
MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO BRING FORWARD SECTIONS 27-104-13
AND 31-17-123, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENT;
AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1)
Except as otherwise provided in subsections (2) and (3), until June 30,
2003, due to the severe revenue shortfall during the current fiscal year, the
following provisions shall apply:

(a)
No state agency is authorized to purchase any equipment as defined in
Section 31-7-1.

(b)
No state agency is authorized to hire any new employees, or promote,
reclassify, reallocate or realign a pay grade with regard to any of its
employees or job positions. The State
Personnel Board shall immediately suspend all hirings, promotions,
reclassifications, reallocations and pay grade realignments of employees or job
positions in accordance with Section 25-9-116.

(2) If a state agency
determines that it is necessary to purchase any equipment or hire any new
employees before July 1, 2003, the agency may appeal to the State Fiscal
Officer. The State Fiscal Officer shall
immediately notify the Joint Legislative Budget Committee of the state agency's
appeal and the date upon which the State Fiscal Officer will hold a hearing on
the appeal. The State Fiscal Officer
shall grant a hearing to the state agency on its appeal within fifteen (15)
days after notice of the appeal is given to the State Fiscal Officer. The hearing shall not be a public meeting;
however, any member of the Joint Legislative Budget Committee may attend the
hearing. At the hearing, the state
agency must demonstrate to the satisfaction of the State Fiscal Officer that a
serious emergency exists of such magnitude that the essential mission of the
agency cannot be carried out without the immediate purchase of the equipment or
the hiring of the new employees. If the
state agency makes the demonstration required by this subsection, the State
Fiscal Officer, in his discretion, may authorize the agency to purchase some or
all of the equipment or hire some or all of the new employees requested by the
agency.

(3)
A state agency may take any action that otherwise would be prohibited
under subsection (1) of this section if all of the funds to be expended to fund
that action are federal funds, state-source special funds or a combination of
federal funds and state-source special funds.
For the purposes of this subsection, the term "state-source special
funds" means all revenues or income from any source, other than federal
funds or appropriations from the State General Fund, that are received,
collected by or available for the support of or expenditure by a state agency.

(4)
For purposes of this section, the term "state agency" means
any agency, board, commission, department or institution of the State of
Mississippi.

25-9-116. * * * The
State Personnel Board shall institute an immediate suspension of all
hirings, promotions, reclassifications, reallocations and pay grade
realignments * * *. However, that suspension does not
prohibit an agency from hiring new
employees, promoting employees, or reclassifying, reallocating or realigning a
pay grade with regard to any of its employees or job positions, if all
of the funds to be expended to fund the action taken by the agency are federal
funds, state-source special funds or a combination of federal funds and state-source
special funds. For the purposes of this
section, the term "state-source special funds" has the meaning
provided in Section 1(3) of this act.

[From
and after July 1, 2003, this section will read as follows:]

25-9-116.
Upon recommendation of the State Fiscal Officer, after a
determination that the state revenue and expenditure requires such action,
the State Personnel Board may institute an immediate suspension of all hirings,
promotions, reclassifications, reallocations and pay grade realignments until
such time as the State Fiscal Officer shall recommend that such action
is no longer required.

27-104-13.
The State Fiscal Officer shall have the right to disapprove or reduce
and revise such estimates of general funds and state-source special funds for
any General Fund or special fund agency, and for the "administration and
other expenses" budget of the State Highway Department, in an amount not
to exceed five percent (5%) if he finds that funds will not be available within
the period for which the budget is drawn, or if he finds that the requested
expenditures, or any part thereof, are not authorized by law, and such action shall
be reported to the Legislative Budget Office.
The State Fiscal Officer may, upon his determination of need based upon
a finding that funds will not be available within the period for which the
budget is drawn, transfer funds as provided in Section 27-103-203, from the
Working Cash-Stabilization Reserve Fund to the General Fund to supplement the
General Fund revenue. In the event that
the estimates of general funds and state-source special funds of all General
Fund and special fund agencies, and of the "administration and other
expenses" budget of the State Highway Department, have been reduced by
five percent (5%), additional reductions may be made but shall consist of a
uniform percentage reduction of general funds and state-source special funds to
all General Fund and special fund agencies, and to the "administration and
other expenses" budget of the State Highway Department. Any state-source special funds reduced under
the provisions of this section shall be transferred to the State General Fund upon
requisitions for warrants signed by the respective agency head and said
transfer shall be made within a reasonable period to be determined by the State
Fiscal Officer.

For the purpose of this section,
"state-source special funds" shall be construed to mean any special
funds in any agency derived from any source, but shall not include the
following special funds: special funds
derived from federal sources, from local or regional political subdivisions, or
from donations; special funds held in a fiduciary capacity for the benefit of
specific persons or classes of persons; self-generated special funds of the
State Institutions of Higher Learning or the state junior colleges; special
funds of Mississippi Industries for the Blind, the State Port at Gulfport,
Yellow Creek Inland Port, Pat Harrison Waterway District, Pearl River Basin
Development District, Pearl River Valley Water Management District, Tombigbee
River Valley Water Management District, Yellow Creek Watershed Authority, or
Coast Coliseum Commission; special funds of the Department of Wildlife,
Fisheries and Parks derived from the issuance of hunting or fishing licenses;
and special funds generated by agencies whose primary function includes the
establishment of standards and the issuance of licenses for the practice of a
profession within the State of Mississippi.

31-17-123.
The intent of the Legislature is to authorize borrowing funds under the
provisions of Sections 31-17-101 through 31-17-123 to offset any temporary cash
flow deficiencies and should not be construed to authorize the borrowing of any
funds in an amount which cannot be repaid during the fiscal year in which such
funds are borrowed. The State Tax
Commission and University Research Center, utilizing all available revenue
forecast data, shall annually develop a General Fund revenue estimate to be
adopted by the Legislative Budget Office as of the date of sine die
adjournment. If, at the end of October,
or at the end of any month thereafter of any fiscal year, the revenues received
for the fiscal year shall fall below ninety-eight percent (98%) of the
Legislative Budget Office General Fund revenue estimate at the date of sine die
adjournment, the State Fiscal Officer shall reduce allocations of general funds
and state-source special funds to General Fund and special fund agencies and to
the "administration and other expenses" budget of the State Highway
Department in an amount necessary to keep expenditures within the sum of actual
General Fund receipts including any transfers to the General Fund from the
Working Cash-Stabilization Reserve Fund for the fiscal year. The State Fiscal Officer may, upon his
determination of need based on the revenue shortfall, transfer funds as
provided in Section 27-103-203, from the Working Cash-Stabilization Reserve
Fund to the General Fund to supplement the General Fund revenue. State-source special funds in an amount
equal to any reduction made under the provisions of this section shall be
transferred to the State General Fund upon requisitions for warrants signed by
the respective agency head and such transfer shall be made within a reasonable
period to be determined by the State Fiscal Officer. No agency's allocation shall be reduced in an amount to exceed
five percent (5%); however, in the event that the allocations of general funds
and state-source special funds to all General Fund and special fund agencies
and to the "administration and other expenses" budget of the State
Highway Department have been reduced by five percent (5%), any additional
reductions required to be made hereunder shall consist of a uniform percentage
reduction of general funds and state-source special funds to all General Fund
and special fund agencies, and to the "administration and other
expenses" budget of the State Highway Department. Any receipt from loans authorized by
Sections 31-17-101 through 31-17-123 shall not be included as revenue
receipts. The State Fiscal Officer
shall immediately send notice of any action taken under authority of this
section to the Legislative Budget Office.

For the purpose of this section,
"state-source special funds" shall be construed to mean any special
funds in any agency derived from any source, but shall not include the
following special funds: special funds
derived from federal sources, from local or regional political subdivisions, or
from donations; special funds held in a fiduciary capacity for the benefit of
specific persons or classes of persons; self-generated special funds of the
State Institutions of Higher Learning or the state junior colleges; special
funds of Mississippi Industries for the Blind, the State Port at Gulfport,
Yellow Creek Inland Port, Pat Harrison Waterway District, Pearl River Basin
Development District, Pearl River Valley Water Management District, Tombigbee
River Valley Water Management District, Yellow Creek Watershed Authority, or
Coast Coliseum Commission; special funds of the Department of Wildlife,
Fisheries and Parks derived from the issuance of hunting or fishing licenses;
and special funds generated by agencies whose primary function includes the
establishment of standards and the issuance of licenses for the practice of a
profession within the State of Mississippi.

SECTION
5. This act shall take effect and
be in force from and after its passage.